topic 2020 Residential Energy Credit Calculation in Deductions & credits

2020 Residential Energy Credit Calculation

HomeInTosa — Thu, 18 Mar 2021 04:01:38 GMT

Sorry but I am really confused why I don't seem to be coming up with no Energy Credit for 2020.

In 2019 I installed a new furnace and AC unit in my main home in Utah. I seem to have taken a $150 credit on my 2019 taxes. I sold that house in 3/2020.
I moved into a 70 year-old house (Wisconsin) in 3/2020 and spent close to $30,000 on new windows and doors.

But TurboTax is not coming up with any credit for me.

I have not taken my maximum life-time credit of $500.
I had no credit carry-over from 2019 because I did not max out then. I figure I should have $350 more available.

Any idea what I am missing in my understanding?

Re: 2020 Residential Energy Credit Calculation

CatinaT1 — Thu, 18 Mar 2021 12:27:33 GMT

Review your entries in this section.

TurboTax will generate a Form 5695 (Home Energy Credit) by doing the following:

Click on Federal Taxes (Personal if using Home and Business)
Click on Deductions and Credits 
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits click on the start or update button

Form 5695 is used to calculate residential energy credits.

https://ttlc.intuit.com/questions/1899558-what-is-form-5695

https://www.irs.gov/uac/form-5695-residential-energy-credits

Like you said, this credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.  Of that combined $500 limit,

A maximum of $200 can be for windows.
The maximum tax credit for a furnace circulating fan is $50.
The maximum credit for a furnace or boiler is $150.
The maximum credit for any other single residential energy property cost is $300.

Additionally, this is a non-refundable credit and can not be used if you have no tax liability.

You can check to be sure that is what is happening by viewing your Tax Summary.   Here is how to do that:

Click on Tax Tools on the left side of the screen (you may need to click on Continue in the center first).
Click on Tools.
In the box that pops up in the center, click on View Tax Summary.

If you see a 0 for Total Tax, then that is the reason you don't qualify for this particular credit. 

Re: 2020 Residential Energy Credit Calculation

HomeInTosa — Sat, 20 Mar 2021 18:02:05 GMT

Thanks. I closed TurboTax (in frustration?) and when I went back later I had a $153 credit so something must not have clicked until it did a recalculation. So I did not have to use your suggestion.

Re: 2020 Residential Energy Credit Calculation

KangPern — Fri, 30 Apr 2021 00:14:55 GMT

I do have tax liability and Turbo Tax still classied my $300 energy credit from my new high efficiency AC into the Nonrefundable Credit on Schedule 3. How can I remedy it?

Re: 2020 Residential Energy Credit Calculation

BillM223 — Fri, 30 Apr 2021 02:39:50 GMT

The Nonbusiness Energy Property Credit is a nonrefundable credit, so line 5 on Schedule 3 is where it belongs. From here it will flow to your 1040 to be applied against your tax.

Do you think otherwise?